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Does network building improve sales performance? The stabilizing role of job embeddedness

Chia-Yi Cheng (Department of Risk Management and Insurance, Ming Chuan University, Taipei, Taiwan, R.O.C.)
Jung-Nung Chang (Graduate School of International Affairs, Ming Chuan University, Taipai, Taiwan, R.O.C.)

Journal of Organizational Effectiveness: People and Performance

ISSN: 2051-6614

Article publication date: 1 June 2015

472

Abstract

Purpose

The purpose of this paper is to combine the concepts of network building (NB) and job embeddedness (JE; both on-the-job and off-the-job embeddedness (ON and OFF)) and examines how to improve sales performance (SP) by effectively stabilizing the sales force.

Design/methodology/approach

Sales practices were examined to establish the measures of overall sales performance. A factor analysis was conducted to extract two performance dimensions: customer relationship performance (CRP) and product selling performance (PSP). Structural equation modeling was employed to test the hypothesized model by analyzing survey data collected from 445 salespeople who work for the top five insurance firms in Taiwan.

Findings

The results show that the NB of salespeople has a direct positive effect on ON and OFF; JE plays a critical role in mediating the relationship between NB and SP; and NB contributes directly only to CRP. However, it does not have a positive effect on PSP until JE is introduced as a mediator to generate CRP.

Practical implications

In developing the NB of salespeople, managers should be provided with clear indicators about on-the-job and off-the-job-embeddedness for manpower stability. Moreover, in addition to seeking product sales, managers should direct salespeople to embed in sales work by providing performance measures involving customer relationship.

Originality/value

This study highlights the need for a viable and integrated model of sales performance. The results indicate that the career achievement of field service employees relies primarily on whether they could effectively build social relationships. Theoretically, this investigation introduces NB into the JE theory, clarifies the relationship among NB, JE, and SP, and proposes a superior mechanism (CRP) for improving sales performance in the financial and insurance industries. Moreover, this study provides additional support for the relationship between ON and OFF.

Keywords

Citation

Cheng, C.-Y. and Chang, J.-N. (2015), "Does network building improve sales performance? The stabilizing role of job embeddedness", Journal of Organizational Effectiveness: People and Performance, Vol. 2 No. 2, pp. 110-133. https://doi.org/10.1108/JOEPP-08-2014-0052

Publisher

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Emerald Group Publishing Limited

Copyright © 2015, Emerald Group Publishing Limited

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